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AMEX gets onboard with BNZ anti-fraud technology

NEWS RELEASE 31 March, 2011

AMEX gets onboard with BNZ anti-fraud technology

AUCKLAND, New Zealand

BNZ announced today that its patented protection mechanism for bank and credit cards has been approved for use on American Express cards from this week. BNZ invented and developed this world beating fraud prevention technology, called Liquid Encryption Numbers or LEN, in New Zealand and holds the global patent.

Liquid Encryption technology was launched on BNZ debit cards and Visa and MasterCard credit cards in 2008 and BNZ customers have since benefited from a significant decrease in fraud experiences with losses from the most common form of card fraud dropping by more than half. BNZ Chief Operating Officer Stephen Mockett says, “BNZ’s Liquid Encryption technology is a dynamic protection against the global incidence of card fraud.

This BNZ developed technology is capable of identifying and actively locating card skimmers and works to reduce the broad reaching effects of this criminal activity. We are delighted that American Express has joined Visa and Mastercard in a commitment to widen its fraud protection capability.”

American Express Vice President and Group General Manager, Global Network Services Katrina Stuart says, “American Express is excited to be offering an extra layer of security to our BNZ Cardmembers. “BNZ and American Express each have a strong reputation for providing the highest levels of protection to all of their customers. Liquid Encryption is simply another, proven way of giving BNZ American Express Cardmembers the peace of mind that their personal financial data is safe and secure." LEN is aimed at putting an end to “card skimming”, where the information on the magnetic stripes is captured by fraudsters without customers’ knowledge.

It works in conjunction with existing fraud detection tools and changes the magnetic stripe data every time the card is used in an ATM, rendering any stolen card data obsolete. Mr Mocket says, “Based on BNZ’s experience to date the technology successfully identifies and declines on average 61 per cent of first time fraudulent card present transactions. Additionally LEN is capable of eliminating up to 95 per cent of card reissuance resulting from fraud.

“The benefit to BNZ customers is that they don’t experience any down time if their card is compromised, leaving them without the use of their credit card, which is particularly problematic when they are offshore. LEN enables customers to continue using their existing card while it immediately recognises any cloned cards and declines any transactions that may be attempted.” BNZ’s zero fraud liability guarantee ensures that customers will not lose out should any fraudulent transactions occur on their cards. Credit card terms and conditions must be adhered to. BNZ won a Canstar Cannex Innovation Excellence Award for the LEN technology earlier this month. Ends. Notes to editors: About skimming:

“Skimming” is the unauthorised and usually, unnoticed, capture of card magnetic stripe information by illegal modification of payment devices, or through a separate card readers.

Fraudsters can also capture PIN data and then create dummy or clone cards in order to drain the victim’s account or make illegal purchases.

Many New Zealanders are still unaware of the threat of posed by skimming fraud, which is on the rise around the globe.

In Australia in 2010 payment fraud totalled more than $A200 million, credit card fraud made up 77 per cent of that total.

According to a survey by ACI Worldwide, in the past five years, nearly one third of consumers have been victims of credit card fraud with card fraud increasing by 60 percent since 2009.

In the UK card fraud cost more than £600 million in 2008, a figure expected to increase as fraudsters employ new organisational methods and evolving technologies.


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